End of the week review = +4.5%

Well I had a good feeling about 2011 and so far so good.  If all my weeks were like this then I’d be a happy boy.

My income trading generated 62 pips off 3 trades for a 3% return and one of my position trades has triggered.  I mentioned earlier in the week that I was watching NZDUSD and GBPUSD for longer term swing trades.

I had orders for a long trade on GBPUSD at 1.5655 which triggered a few days ago.  As you can see from the chart price nipped me in and then reversed strongly and I fully expected to be taken out for a full loss.  However my stop was not touched, price turned around and with the help of a little fundamental news flow at its back, Cable sailed north.

I had my T1 at an area of resistance on my daily chart and half my position was taken out at 1.5759 for +104 pips.  I might add I wanted my 1st tgt to be 1.5810 but was happy to settle for less rather than hoping GBPUSD would push through resistance.  As it happened price hit my T1 and after going sideways for the good part of a day did indeed make the 1.5810 level.  However as traders we make decisions based upon what we see at the time on the charts.

Anyway price pushed up to the next level of resistance on my charts and at the moment it’s playing with that level.  Will it push further on?  I have no idea, it may well be forming a double top at the resistance level of 1.5860. Only time will tell.

When you open up your platform and see your position 200+ pips up you’re naturally interested in taking the profit, especially when you see a possible double top forming at a resistance level!  When intra-day trading I like to use targets however one of my goals for 2011 was to let my longer term trades run as far as possible and let the market take me out on my final position. 

So with this in mind I’m following a trailing stop exit strategy and in line with that the stop level was moved to 1.5750 as of 1200 today 14th Jan.  That locks in at least +95 on the final portion. It also means that I can just leave the trade to play itself out.  The position has profit locked in and the stop will continue to be trailed in line with my plan.  How much longer will it go North?  Who knows? I certainly don’t!

My NZDUSD trades did not trigger and were taken off the platform at lunchtime today in line with my trading plan.

Anyway I hope you’ve had an equally enjoyable start to your New Year and I wish you the very best of luck with your own trading.

FXTraderPaul